Indonesian Rupiah Stabilizes After Hitting Lowest Level Since 1998

Bank Indonesia's aggressive interventions have slightly eased pressure on the currency, though fiscal and global challenges persist.

The rupiah fell to 16,640 per US dollar on March 25, its weakest level since the Asian financial crisis, before recovering slightly to 16,590 after central bank intervention.
Bank Indonesia intervened in the spot foreign exchange, bond markets, and domestic non-deliverable forwards to stabilize the currency.
The currency's decline is attributed to global uncertainties, including US tariffs, a strong dollar, and concerns over domestic fiscal health and ambitious government spending plans.
Foreign investors have withdrawn significant funds from Indonesia's stock market, which hit its lowest intraday level in three years earlier this week.
Investor confidence remains fragile, with analysts urging clearer communication from authorities on fiscal policies to restore market stability.